what is your overhead per day or per year?

Discussion in 'Business Operations' started by RSK Property Maintenance, Oct 8, 2013.

  1. RSK Property Maintenance

    RSK Property Maintenance LawnSite Bronze Member
    Posts: 1,485

    mine is 21,000 annually. that includes general liability policy, my advertising, my cell phone bill, my commercial auto policy, mower maintenance, truck maintenance, 10,000 a year in gas/diesel, trimmer line, 2 stroke oil, replacement parts for trimmers, chainsaws, the two trailer payments I currently make. what it doesn't include is labor or taxes, I add tax on top of my costs. I take whatever I need from my business account...I feel like my overhead is a little high. but I don't have full time work except for a few weeks in the spring and fall. so I still have lots of growing to do. but either way on average I could be profiting 50-60% if I didn't reinvest so much back into my business but I think its for the better that I just reinvest almost all of it.
     
  2. Outdoor Images

    Outdoor Images LawnSite Member
    Posts: 12

    everyones over head will be different based on income and revenue. I see you are out of manchester, ct? how good are you with snow plowing? I have bid requests out there but dont want to take them.
     
  3. gulfjoe

    gulfjoe LawnSite Bronze Member
    Posts: 1,613

    Lets see if I got this right....
    $21000 annually that comes out to $57.53 a day. or $403 a week.

    So everything after $403 a week is straight profit right?
     
  4. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,520

    overhead is what is known as fixed expenses; it can be both fixed variable and fixed non variable. The test for overhead is this: if you do nothing, you will incur overhead expenses. Lets go thru that list and call out what isnt fixed:
    mower maintenance, truck maintenance, 10,000 a year in gas/diesel, trimmer line, 2 stroke oil, replacement parts for trimmers, chainsaws
    These above will not cost you a dime if you do nothing for a year.

    terrible idea and something you really should stop ASAP. Pay yourself a fixed amount monthly and learn to live within your means. PS, that would then be overhead... damn

    Free advise is worth about what you pay i suppose... ;)
     
  5. RSK Property Maintenance

    RSK Property Maintenance LawnSite Bronze Member
    Posts: 1,485

    what are they for smaller commercial accounts? I would like to get my foot in the door with commercial but i have a slight problem, I'm only 1 truck, with 1 back up truck. and I already have 50 driveways I do.

    yes you would be correct before efficiency taught me a few things.

    I take very little because I need very little and take almost all of my profits and put them back into my business. I'm addicted to reinvesting my money to make my life easier, and my jobs go quicker. there's not much left after that. for example last year I grossed 43,000 and took showed 10,000 profit. the rest was expenses, between my overhead, and buying tools or equipment it was gone. Isn't this normal for the first few years of a landscaping business?
     
  6. sticklelm

    sticklelm LawnSite Senior Member
    Posts: 335

    its what i do too, but i like what efficiency said about having a fixed monthly income for yourself. will probably make like easier with the paper work and everything.
     
  7. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,520

    I did the take what I need when I started too but knowing what I know now, ill tell you taking fixed amounts is so much better. We even run an annual bonus for me and my wife thru our payroll company.
    Posted via Mobile Device
     
  8. JContracting

    JContracting LawnSite Bronze Member
    Posts: 1,878

    I just happened to come across this thread as right now I'm working on my budget for next year. My overhead is about $38,000/yr. Snow is additional income, almost all clients are hourly/per visit, not many are monthly/seasonal and while this is more stressful when I crunch the numbers (like I am right now) for how much needs to be made in the 6 mo lawn/landscape season, however, a huge winter can be rewarding.
    So $38,000 / 6 = $6333.33 after taxes which we will estimate at 25%, so roughly $8500 per month needs to be grossed, then add about $3000 (I'm not done running numbers but I'd believe this should be enough) in operating expenses for fuel, maintenance, labor, etc. That is $11,500 per mo for the 6 month season. Divide that by 4 weeks = $2875 per week. Put that into 3 working days = approx. $960 per day. Or approx $720 per day with a 4 day workweek. With these numbers I am referring to maintenance services, I prefer to get the maintenance done as early in the week as possible, leaving the remaining weekdays for installs.

    This does not include expensing equipment depreciation though.
     
  9. gulfjoe

    gulfjoe LawnSite Bronze Member
    Posts: 1,613

    Part timer here...

    I would like to ask with a $38,000 over head, how many customers do you have? And how many employees do you have?
    Posted via Mobile Device
     
  10. JContracting

    JContracting LawnSite Bronze Member
    Posts: 1,878

    I couldn't tell you how many clients I have. A company's size isn't measured by the amt of clients, 100 5,000 sq ft resis are a lot different than 20 wal-marts.
    I'm solo aside from help on installs.
    Posted via Mobile Device
     

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